(1) State land that is not under a contract of sale may be included in an irrigation district upon petition by the state entity responsible for the administration of the land. (2) State land included in an irrigation district may not be: (a) assessed by the district; or (b) the subject of use charges imposed by the district. (3) The entity responsible for the administration of the state land to be included in an irrigation district and the state engineer shall make a thorough examination of the benefits to accrue to the land by its inclusion in the district and by the acquisition of water rights for the land. (4) (a) The entity responsible for the administration of the state land to be included in an irrigation district may enter into a contract with the district, specifying the land benefitted and the amount of benefit, as determined under Subsection (3). (b) Each contract under Subsection (4)(a) shall provide that the entity responsible for the administration of the state land shall make annual payments to the district, to be applied to the cost of constructing the district's irrigation works, until the full amount of the benefit is paid. (c) The entity responsible for the administration of state land included in an irrigation district may, at its option, pay the full amount of the contract at any time.
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